Ministry of Energy and Coal Industry of Ukraine and the European Commission will work out an optimal model aimed at reforming underground gas storages

By NewsKitchen Publisher /
July 17, 2017 /
Comments Off on Ministry of Energy and Coal Industry of Ukraine and the European Commission will work out an optimal model aimed at reforming underground gas storages

Headline: Ministry of Energy and Coal Industry of Ukraine and the European Commission will work out an optimal model aimed at reforming underground gas storages

Ukraine and the European Union have launched an ambitious project of
comprehensive study of the Ukrainian underground gas storages (UGS), which is
designed to work out the optimal model for the reform of domestic gas storage
facilities. The Ministry of Energy and Coal Industry of Ukraine acts as an
ultimate beneficiary of the said project and expects to receive from the
European Commission a roadmap – a model for reforming domestic gas storage
facilities.

The project will be carried out
by a consortium consisting of a top global management consulting firm, French
operator of underground gas storages (Storengy) and
an international law firm (CMS Cameron McKenna Nabarro
Olswang).

«Gas storage facilities are the basis for the development of the gas
market of Ukraine, thus the implementation of this project is one of the
prerequisites for the creation of a competitive environment», Deputy Minister
of Energy and Coal Industry Ihor Prokopiv
said.

The research will yield the demand for gas storage products in the following
20 years and opportunities for Ukraine in the UGS market. The findings will be
used to generate several strategy scenarios for the optimal use of Ukraine’s
UGS facilities.

The project team will analyze whether any of the storage facilities are
necessary for an efficient operation of Ukraine’s gas transmission system.
Thereby, the project is of utmost importance for the implementation the Law of
Ukraine “On Natural Gas Market and the fulfillment of Ukraine’s
commitments towards the unbundling of the gas transmission function from Naftogaz.

The project is funded by the European Union and seeks to develop a
sustainable economic approach to the use of Ukrainian underground gas storage
facilities in the context of the European and Ukrainian energy markets.